If the investment accelerator from an increase in government purchases is larger than the crowding-out effect, then
a. the multiplier is probably zero.
b. the multiplier is probably equal to one.
c. the multiplier is probably greater than one.
d. the multiplier is probably less than one.
c
You might also like to view...
Economists refer to the "typical" rate of unemployment as the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false
What effect does foreign exchange market intervention by the U.S. Federal Reserve to increase the value of the U.S. dollar have on the U.S. monetary base?
a. The U.S. monetary base decreases. b. The U.S. monetary base increases. c. It does not have an effect on the U.S. monetary base at all. d. The effect on the U.S. monetary base is ambiguous and depends on where counterparties deposit the funds.
Answer the following questions true (T) or false (F)
1. As the number of firms in a market decreases, the supply curve will shift to the left and the equilibrium price will fall. 2. If the population increases and input prices increase, the equilibrium price of a product will definitely increase. 3. If the number of firms producing electric cars increases and consumer preference for electric cars increases, the equilibrium quantity of electric cars will definitely increase.
The percentage of the federal budget devoted to Social Security has
A. always been negligibly small. B. increased dramatically over the last decade. C. remained steady over the last decade. D. decreased dramatically over the last decade.